Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2018 Summer 1st Sem 3519202 Economics For Manager Efm Previous Question Paper
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER (1) ? EXAMINATION ? SUMMER 2018
Subject Code: 3519202 Date: 01/05/2018
Subject Name: Economics for Manager (EFM)
Time: 10:30 AM To 01:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1 Write short note
(a) Money Neutrality
(b) Consumer surplus
(c) Cross elasticity of demand
(d) Repo rate and CRR
(e) Deadweight Loss
(f) Natural Monopoly
(g) Economic Profit
14
Q.2 (a) Explain price elasticity of demand and the income elasticity of demand.
Also explain the determinants of the price elasticity of demand.
07
(b) What are the demand schedule and the demand curve, and how they
related? Why does the demand curve slop downward?
07
OR
(b) Explain the relationship between a firm?s total revenue, profit and total
cost with the help of diagram.
07
Q.3 (a) What is CPI? List the steps involved in calculation of CPI. Briefly
explain the three problems in measuring the cost of living.
07
(b) What is the Prisoners Dilemma & What does it have to do with
Oligopoly?
07
OR
Q.3 (a) Discuss production and pricing decision for monopoly firm. 07
(b) Competitive Firm stays in market even if they make zero economic
profit. Explain it.
07
Q.4 (a) Define Nominal Exchange Rate, Real Exchange Rate and the concept
PPP with suitable examples
07
(b) Explain the short run trade-off between inflation and unemployment
using the Phillips curve. When does the Phillips curve become vertical?
07
OR
Q.4 (a) GDP is not ultimate measure of well-being of an economy. Discuss it. 07
(b) What is CPI? Describe the three problems that make the consumer price
index an imperfect measure of the cost of living.
07
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Page 1 of 2
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER (1) ? EXAMINATION ? SUMMER 2018
Subject Code: 3519202 Date: 01/05/2018
Subject Name: Economics for Manager (EFM)
Time: 10:30 AM To 01:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1 Write short note
(a) Money Neutrality
(b) Consumer surplus
(c) Cross elasticity of demand
(d) Repo rate and CRR
(e) Deadweight Loss
(f) Natural Monopoly
(g) Economic Profit
14
Q.2 (a) Explain price elasticity of demand and the income elasticity of demand.
Also explain the determinants of the price elasticity of demand.
07
(b) What are the demand schedule and the demand curve, and how they
related? Why does the demand curve slop downward?
07
OR
(b) Explain the relationship between a firm?s total revenue, profit and total
cost with the help of diagram.
07
Q.3 (a) What is CPI? List the steps involved in calculation of CPI. Briefly
explain the three problems in measuring the cost of living.
07
(b) What is the Prisoners Dilemma & What does it have to do with
Oligopoly?
07
OR
Q.3 (a) Discuss production and pricing decision for monopoly firm. 07
(b) Competitive Firm stays in market even if they make zero economic
profit. Explain it.
07
Q.4 (a) Define Nominal Exchange Rate, Real Exchange Rate and the concept
PPP with suitable examples
07
(b) Explain the short run trade-off between inflation and unemployment
using the Phillips curve. When does the Phillips curve become vertical?
07
OR
Q.4 (a) GDP is not ultimate measure of well-being of an economy. Discuss it. 07
(b) What is CPI? Describe the three problems that make the consumer price
index an imperfect measure of the cost of living.
07
Page 2 of 2
Q.5 THE DEBEERS DIAMOND MONOPOLY
A classic example of monopoly that arises from the ownership of a key
resource is De beers, the South African diamond company. The
company was founded in 1888 by Cecil Rhodes, an English business
man (and benefactor for the Rhodes scholarship), when he merged two
of the biggest mines in the country. Rhodes then proceeded to use his
profits to continue buying mines, consolidating his market power.
Today, De Beers controls about 80% of the world?s production of
diamonds. Although the firms share of the market is not 100%,it is large
enough to exert substantial influence over the market price of diamonds.
How much market power does De Beers have? The answer depends in
part on whether there are close substitutes for its products. If peoples
view Emeralds, rubies and sapphires as good substitutes for diamond,
then De Beers have relatively little market power. In this case, any
attempt by De Beers to raise the price of diamonds would cause people
to switch to other Gemstones. But people view this others stones as very
different from diamonds. Then De Bees can exert substantial influence
over the price of its product.
De Beers pay for large amount of advertising. At first this decision
might seem surprising. If a monopoly is the sole seller of its product,
why does it need to advertise? One goal of the De Beers ads is to
differentiate diamonds from other gems in the minds of consumer.
When their slogan tells you that? A diamond is forever?, you are meant
to think that the same is not true of emeralds, rubies and sapphires.(And
the notice that the slogan is applied to all diamonds, not just de Beers
diamonds-a sign of De Beers monopoly position.)If the ads are
successful consumer will view diamonds as unique, rather than as one
among many Gemstones, and this perception will give De Beers greater
market power.
QUESTIONS:
(a) Before other nations began mining for diamonds, did De Beers have
a geographic monopoly, or was it part of a monopolistic competition?
(b) As more businesses and nations enter the diamond industry, why
does De Beers retain such a significant share of the market?
07
07
OR
Q.5 (a) Honest Juice Bar has the following cost schedules.
Quantity Variable cost Total cost
0 0 30
1 10 40
2 25 55
3 45 75
4 70 100
5 100 130
6 135 165
Calculate AVC, ATC, & MC for each quantity, Graph all three curves.
What is the relationship between the marginal cost curve and the
average total cost curve?
07
(b) What are the reasons that Aggregate Supply curve slopes upward in the
short run? Explain with the help of diagram.
07
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This post was last modified on 19 February 2020